PostNL announces share buyback programme of €250 million to neutralise dilutive impact of dividends over 2021-23
Execution to start after 28 February 2022
The Hague, the Netherlands, 25 January 2022 - Today, PostNL announced a share buyback programme to neutralise the assumed dilutive impact of shares issued in relation to dividends over 2021-23. The company will repurchase ordinary shares of PostNL N.V. to value of around €250 million, spread over 2022 and 2023.
Based on PostNL’s strong financial position and in line with its capital allocation framework, the company is well positioned to launch a share buyback programme. The confidence in the successful execution of its strategy gives comfort around the longer term business performance and cash generation perspective. PostNL will continue to focus on value creation for all stakeholders through growth opportunities, cost savings initiatives, acceleration of digitalisation, environmental and social initiatives.
The programme further optimises PostNL’s capital structure while adhering to its financial framework. The company is steering for a solid balance sheet with positive consolidated equity, aiming at a leverage ratio not exceeding 2.0 and applying strict cash flow management. Based on preliminary figures, at year-end 2021 the leverage ratio is expected to be ~0.5. The announced share buyback programme will be executed using cash on balance sheet.
The share buyback programme intends to neutralise the assumed dilutive impact from shares to be issued in relation to the dividends over the years 2021-23. The dividend will develop in line with business performance. The first tranche will be executed in 2022 and is set at between €160 million and €170 million, covering the assumed amount of stock dividend over the financial years 2021 and 2022. The execution of the programme will start after 28 February 2022 and is expected to be completed no later than October 2022. The second tranche will be executed in 2023.
The first tranche of the share buyback programme will be executed within the limitations of the existing authority granted by the Annual General Meeting on 20 April 2021, and will be carried out in compliance with the Market Abuse Regulation. Based on the closing price of PostNL’s ordinary shares on Euronext Amsterdam on 24 January 2022, the share buyback of between €160 million and €170 million to be executed in 2022 represents approximately 9.5% of ordinary shares issued. PostNL intends to use any repurchased shares under the programme to cover its obligations under share-based remuneration arrangements and to deliver future dividend that may be partly paid in stock, at the choice of the shareholder. The remaining number of the bought-back shares will be cancelled.
PostNL has engaged an independent broker to start the execution of the share buyback programme on its behalf and to make trading decisions independently of PostNL. In accordance with regulations, PostNL will inform the market about progress made in the execution of this programme through press releases and via its website.
This press release contains inside information within the meaning of article 7(1) of the EU Market Abuse Regulation.
We are PostNL, the mail and logistics solutions provider for all. With our mail and parcel deliverers who get everywhere, our 5,500 PostNL locations, 11.000 mail boxes and 517 automated parcel lockers, we are always nearby. We aim to be our customers’ favourite deliverer by making it as easy as possible for them to send and receive parcels and letters. Our over 35,000 people are right at the heart of society. On weekdays, we deliver an average 1.1 million parcels and 7.4 million letters across the Benelux region. Our focus is on quality for our customers, creating opportunities for our people and adding value for our stakeholders through growth, digitalisation and sustainability initiatives.
We optimise and support our physical networks by using smart digital solutions and launching new propositions that create value for our customers. We build long-lasting working relationships by acting as a good employer and client for everyone who works for and with us. To make our deliveries as sustainable as possible, we cover a lot of kilometres on foot or by bicycle or e-bike, provide innovative city logistics, use cleaner fuels, and use electric vans and light electric trucks. PostNL NV is a listed company with revenues of €3.1 billion in 2022, 61% of this derived from e-commerce. We provide deliveries of mail and parcels, logistics solutions for e-commerce, and cross-border solutions.